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Auto Repair Business Plan Template

  • Written by Dave Lavinsky

Auto Repair Business Plan

Table of Contents

Auto repair business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their auto repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an auto repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is an Auto Repair Business Plan?

A business plan provides a snapshot of your auto repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need an Auto Repair Business Plan

If you’re looking to start an auto repair business, or grow your existing auto repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your auto repair business in order to improve your chances of success. Your auto repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Auto Repair Businesses

With regards to funding, the main sources of funding for an auto repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an auto repair business.

Finish Your Business Plan Today!

If you want to start an auto repair business or expand your current one, you need a business plan. Below are links to each section of your auto repair business plan template:

Executive Summary

Your executive summary provides an introduction to your mechanic shop business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair business you are operating and the status. For example, are you a startup, do you have an auto repair business that you would like to grow, or are you operating a chain of auto repair businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the auto repair industry. Discuss the type of auto repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of auto repair business you are operating.

For example, you might operate one of the following types of auto repair businesses:

  • Auto Service Shop : this type of auto repair business focuses on routine servicing of cars and trucks, such as oil changes and tire rotation.
  • Transmission Repair Shop: this type of business focuses on maintenancing, diagnosing and repairing transmissions in all types of cars.
  • Body Repair Shop: this type of repair shop focuses on repairing damage to the body of a vehicle, primarily cosmetic damage due to collision.

In addition to explaining the type of auto repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the auto repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the auto repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your automotive business plan:

  • How big is the auto repair industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your auto repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mechanic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: car owners, truck owners, luxury vehicle owners, classic vehicle owners, and businesses that own vehicles such as car rentals, car dealers, delivery businesses, and repairmen.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of auto repair business you operate. Clearly, luxury vehicle owners would respond to different marketing promotions than truck owners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most auto repair businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other auto repair businesses.

Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes auto parts stores (for DIY repair). You need to mention such competition as well.

With regards to direct competition, you want to describe the other auto repair businesses with which you compete. Most likely, your direct competitors will be auto repairs located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What types of vehicles do they maintenance and repair, or what types of maintenance and repairs do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide better maintenance and repair services?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car service business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of auto repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to auto repair, will you provide car rental services, repair financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your auto repair company. Document your location and mention how the location will impact your success. For example, is your auto repair business located in a busy retail district, industrial area, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your auto repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your auto repair business, including speaking with vehicle owners in person or on the phone, maintenancing and repairing vehicles.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 50th car, or when you hope to reach $X in revenue. It could also be when you expect to expand your auto repair business to a new city.  

Management Team

To demonstrate your auto repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing auto repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing auto repair shops or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many cars will you repair per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your auto repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an auto repair business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your shop location lease or descriptions of repairs you are working on.   Summary Putting together a business plan for your auto repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the auto repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful auto repair business.  

Auto Repair Business Plan FAQs

What is the easiest way to complete my auto repair shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair shop you are operating and the status; for example, are you a startup, do you have an auto repair shop that you would like to grow, or are you operating a chain of auto repair shops?

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you. Other Helpful Business Plan Articles & Templates

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Auto Repair Shop Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Auto Repair Business

Are you about starting an auto repair shop ? If YES, here is a complete sample auto repair shop business plan template & feasibility report you can use for FREE .

All over the globe, the auto repair business is such that is important. This is because of the need to have cars fixed.  Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the auto repair garage is one of them.

All over the world, car repairs is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.

As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

People visit auto garages for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; auto repair garage will always translate to money for the owner of the repair garage.

A Sample Auto Repair Shop Business Plan Template

1. industry overview.

Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start.

The Auto Repair Shop industry provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair shop industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair

The Auto Repair Shop industry is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.

The Auto Repair Shop industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth. Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Statistics has it that the Auto Repair Shop industry in the united states of America, is worth $58bn, with an estimated growth rate of 1.4 percent. There are about 251,016 registered and licensed auto repair garages in the United States and they are responsible for employing about 530,978 people.

Over and above, the auto repair shop industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own auto repair business and of course make good money from the industry.

2. Executive Summary

Jack & James Auto Garage®, LLC is a U.S based and licensed auto repair garage. We have been able to secure a standard and well – positioned garage facility in a central and busy district in Fairhope – Alabama.

We are an auto repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Fairhope – Alabama, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Jack & James Auto Garage®, LLC will offers services such as mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading auto repair garages in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

Our workers are going to be selected from a pool of certified and highly experienced auto repair engineers and technicians in and around Fairhope – Alabama and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading auto repair garages and services centers in the United States and throughout the globe.

At Jack & James Auto Garage®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Jack & James Auto Garage®, LLC is founded by Engr. Jack Romney an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his twin brother and business partner for many years James Romney.

They have a combine experience that can help them build Jack & James Auto Garage®, LLC to favorably compete with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

3. Our Products and Services

Jack & James Auto Garage®, LLC was established with the aim of maximizing profits in the auto repair shop industry. We want to compete favorably with the leading auto garages in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Jack & James Auto Garage®, LLC is not just accepted in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages. Our products and services are listed below;

  • Repairing and replacing automotive engines
  • Performing general automotive repairs
  • Power train repair services
  • Brake repair services
  • Scheduled and preventative repair and maintenance services
  • Repairing trucks
  • Repairing and replacing automotive exhaust systems
  • Repairing and replacing mufflers
  • Repairing automotive transmissions
  • Repairing automotive brakes
  • Performing automotive electric repairs
  • Performing automotive wheel alignments
  • Repairing automotive radiators
  • Wheel alignment and repair services
  • Other repair and maintenance services

4. Our Mission and Vision Statement

  • Our vision is to establish a standard and world class auto repair garage whose services and brand will not only be accepted in Fairhope – Alabama but also in other cities in the United States of America.
  • Our mission is to provide professional auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
  • We want to build an auto repair garage that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

Our Business Structure

Jack & James Auto Garage®, LLC is an auto repair and maintenance garage that intend starting small in Fairhope – Alabama, but hope to grow big in order to compete favorably with leading automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Jack & James Auto Garage®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Auto Garage Supervisor

Human Resources and Admin Manager

  • Sales and Marketing Executive
  • Automobile Repair and Maintenance Engineers / Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Auto Garage Supervisor:

  • Serve as project manager of the organization; works directly with employees
  • Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Make certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
  • Ensures that the organization work in line with international best practices.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Create new markets cum businesses for the organization
  • Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Jack & James Auto Garage®, LLC
  • Serves as internal auditor for Jack & James Auto Garage®, LLC.

Auto Repair and Maintenance Engineers (2) and Technicians (8)

  • Handle Power train repair services
  • Handles Brake repair services
  • Handle wheel alignment and repair services
  • Handles other repair and maintenance services
  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jack & James Auto Garage®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured auto repair garage business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jack & James Auto Garage®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jack & James Auto Garage®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new auto repair and maintenance garage in Fairhope – Alabama, it might take some time for our auto repair and maintenance garage to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States. As an auto repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

One good thing about the Auto Repair Shop industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Shop Industry, As a matter of fact, the Auto Repair Shop industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.

8. Our Target Market

Before starting our auto repair and maintenance garage in Fairhope – Alabama, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of auto repair and maintenance garages especially haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Transport Companies
  • Haulage Companies
  • Individuals and households
  • School with transportation system for students

Our Competitive Advantage

Surviving in the business world as an auto repair and maintenance garage requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar automobile repair, servicing and maintenance garages and the small ones as well.

What smaller auto maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations (franchise from automobile manufacturing companies to run their service centers) and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups automobile maintenance, servicing and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Jack & James Auto Garage®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Jack & James Auto Garage®, LLC will generate income by offering the following auto maintenance, servicing and repair related services;

10. Sales Forecast

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to take their cars, vans, and trucks et al for routine maintenance and servicing or for outright repairs.

We are well positioned to take on the available market in the automobile maintenance, servicing and repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our solar panel installation, maintenance and repair company to enviable heights.

We have been able to critically examine the automobile maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fairhope – Alabama.

Below is the sales projection for Jack & James Auto Garage®, LLC. It is based on the location of our business and of course the wide range of auto repair, servicing and maintenance services and target market;

  • First Year-: $250,000
  • Second Year-: $750,000
  • Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same auto maintenance, servicing and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Jack & James Auto Garage®, LLC.

Our corporate goal is to grow Jack & James Auto Garage®, LLC to become one of the top 10 automobile maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages.

Jack & James Auto Garage®, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our auto maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
  • Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
  • Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Fairhope – Alabama and other cities in the United States of America where we intend opening our garages which is why we have made provisions for effective publicity and advertisement of our solar panel installation, maintenance and repair company.

Below are the platforms we intend to leverage on to promote and advertise Jack & James Auto Garage®, LLC;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around Fairhope – Alabama
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of Jack & James Auto Garage®, LLC and the services we offer
  • List our auto repair, servicing and maintenance business in local directories / yellow pages
  • Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Jack & James Auto Garage®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in their fleet of automobiles for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

At Jack & James Auto Garage®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an automobile repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Jack & James Auto Garage®, LLC in the United of America;

  • Business incorporating fees in the United States of America will cost – $750.
  • The budget for Liability insurance , permits and license will cost – $3,500
  • Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $25,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
  • Amount required to purchase the needed software applications to run our business – $ 3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard auto repair, maintenance and servicing garage in the United States of America.

Generating Funding / Startup Capital for Jack & James Auto Garage®, LLC

Jack & James Auto Garage®, LLC is a business that will be owned and managed by Engr. Jack Romney and his twin brother and business partner for many years James Romney.They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Jack & James Auto Garage®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our auto maintenance, servicing and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jack & James Auto Garage®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard office facility for our studio: Completed
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of repair and servicing tools and equipment: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in various industries: In Progress

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Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

  • Brake repair
  • Powertrain repair
  • Muffler & exhaust repair
  • Heating repair
  • Electrical system repair
  • Wheel alignment and repair
  • Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

  • Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
  • Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
  • The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

  • Auto repair shop build-out: $100,000
  • Equipment, supplies, and materials: $40,000
  • Three months of overhead expenses (payroll, utilities): $90,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

  • Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
  • Has begun negotiations to purchase the warehouse that will become the shop.
  • Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
  • Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

  • Individual vehicle owners
  • Delivery drivers
  • Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

  • Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
  • Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

  • Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

  • Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
  • Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
  • Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
  • Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average number of vehicles serviced per month: 450
  • Average fees per month: $15,000
  • Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

How to write a stellar business plan for an auto repair shop

auto repair shop business plan

Are you passionate about fixing cars and restoring them to their former glory? If so, you may have been dreaming about setting up your very own car garage for some time. Before fully taking the plunge, however, you'll need a tailor-made business plan.

To guide you through this process, we've written the guide below to offer our top tips for making your auto repair shop business plan a reality.

On the menu:

  • Why do you need a business plan?
  • What type of auto repair shop should I open?
  • What do you need to create your auto repair shop business plan?
  • What is the financial forecast for an auto repair shop?
  • What does the written part of an auto repair shop business plan look like?
  • What tool should I use to write my business plan?
  • Business plan template of an auto repair shop.
  • Three things you should know before writing an auto repair shop business plan

1. Why do you need an auto repair shop business plan?

Did you know that 60% of all new businesses in the UK are likely to cease trading within their first three years? Durham City Incubator believes that a "lack of business planning" is the number one reason for the failure rate being so high.

Writing out an auto repair shop business plan is, therefore, essential for your new business.

An auto repair shop business plan allows you to identify the level of initial financing that is required. It also helps you:

  • Anticipate any potential cash flow problems along the way
  • Estimate how much profit your business is likely to make, within its first three to five years of trading
  • Obtain financing from the bank - Small Biz Trends concludes that you are twice as likely to secure funding if you have a business plan

2. What type of auto repair shop should I open?

According to A Plus Auto Glass, there are multiple types of auto repair shops that you could open:

Auto repair service technicians

This is perhaps the most standardized service from the lot. It entails basic checks such as oil fluid levels and electricals.

You'll likely receive several repeat customers if you choose this model (especially those who drive a considerable amount) because servicing a car is recommended every 12 months or 10,000-12,000 miles (whichever comes first)!

Diagnostic technicians

This model is slightly more specialized. Such technicians carry out skilled checks that underline any issues vehicles might have.

It requires a higher level of skill because these issues cannot be seen on the vehicle's surface.

Auto system expert

If you choose to offer this model, you will specialize in surveying key systems that the vehicle has.

Engines, brakes and gear sets are all critical systems in most vehicles.

This business model has the potential to earn you high revenue.

Auto body repair clinic

This clinic or repair centre deals with vehicles that have been involved in accidents or roadside crashes.

If you choose this model, you may not have the volume of customers that the previous models may have but the revenue per sale is likely to be much higher.

You'll repair and retouch cars to ensure that they look as good as new and that any scratches or broken parts are fixed.

auto repair shop business plan car mechanic

Auto repair painters

If you choose this model, you will repaint vehicles or add touches to them.

Vehicles often need a fresh layer of paint, especially if they are being driven in areas where there is a lot of environmental pollution.

Expert auto glass repair

This model offers customers the chance to repair their windshield, windows or any other glass-related parts from their vehicle.

You'll likely require a high level of skill to do so but the rewards can be exponential, earnings wise.

You might also receive several clients who just want to repair small cracks in their vehicles.

3. What do you need to create your auto repair shop business plan?

Before writing your auto repair shop business plan and creating the financial forecast for your auto repair shop, you must first gather the data needed to create a comprehensive business plan.

You'll achieve this by...

  • Carrying out market research for your auto repair shop 
  • Building your marketing plan
  • Evaluating the operational costs and investments involved in setting up your business

Conducting market research for an auto repair shop

This is the longest and, admittedly, most tedious step in creating an auto repair shop business plan, but once you've got the right method - there's no excuse for mistakes.

As you move through the market research, you'll develop an understanding of the needs of your target market, as well as the current state of the industry. 

This enables you to then determine hot industry trends and identify where you should position yourself within the market to make your auto repair shop a success. 

Should your auto repair shop provide in-depth expertise on electronics, for example, or should it focus instead on motorcycle repairs or the sale of spare parts?

You must also assess the area in which you want to place your auto repair shop. This will give you a better idea of the local market, including the needs of residents and what services competitors are already offering. 

Developing the marketing plan for your auto repair shop

Once the market research is completed, the next step is setting out the marketing strategy for your auto repair shop's business plan. 

This is an opportunity to identify how you'll get your name out on the market and stand out from your competitors.

There are many ways of promoting an auto repair shop, from setting up a website and social media network to paid newspaper advertising and handing out street flyers. 

Taking the time to decide which marketing actions you want to go for will help you determine how much money you need to set aside for each one and how many customers you can expect, which you can then factor into your financial forecast later on.

auto repair shop business plan setting up a website

Evaluating operational costs and investments

To keep an auto repair shop running smoothly, you need a team you can count on. Typically, the size of a small car garage team is around 3 to 4 employees. You'll need a receptionist to welcome customers and at least two employees with experience in car mechanics - with the salary of each staff member being allocated according to their qualifications.

Additionally, you'll need a lot of technical equipment to get an auto repair shop up and running. Repairing vehicles requires having the right tools, as well as a full stock of car parts to help you meet the diverse demands of each car owner. 

To get an exact figure for the price of each item, you'll need to contact suppliers and ask them for quotes to integrate in your business plan for an auto repair shop. These quotes will then be integrated into the financial forecast.

4. What is the financial forecast for an auto repair shop?

Establishing the financial forecast is an integral step in the development of your auto repair shop's business plan. 

It is composed of 4 main tables, highlighting different financial aspects of the company:

  • Projected profit and loss statement
  • Projected balance sheet
  • Projected cash flow statement
  • Initial financing plan

The projected P&L of your auto repair shop

This table, which starts with the turnover, allows you to evaluate the growth, evolution of the cost structure of your auto repair shop, and its expected profitability over the coming years.

auto repair shop business plan P&L

The projected balance sheet of your auto repair shop

This table shows the value of the company's assets at a given time, and, in particular, the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc.).

auto repair shop business plan balance sheet

The projected cash flow statement

This table is essential in helping you keep an eye on the company's cash flow, particularly to ensure that the company generates enough cash to be able to repay its loans and regularly renew equipment.

auto repair shop business plan cash flow statement

The initial financing plan

This table gives your bank or potential investor a quick overview of the resources needed to launch your auto repair shop and their costs - as well as the personal contribution you plan to make.

auto repair shop business plan funding plan

5. What does the written part of an auto repair shop business plan look like?

This part cannot be neglected. To be able to interpret your figures and judge the relevance of the assumptions used to build your forecast, it's necessary to have sufficient details about the project.

The editorial part of your business plan is made up of the following sections:

The executive summary 

The executive summary for your auto repair shop's business plan is the equivalent of a cover letter for your auto repair shop business plan.

The aim here is to introduce your business project to investors in as engaging and concise a way as possible, encouraging them to read on and learn more about your exciting venture.

In this part, you place a spotlight on the business's partners and their roles, as well as the distribution of the company's capital and the location of the auto repair shop. 

Be sure to mention who the business is managed by and the percentage of ownership that each partner possesses.

In terms of the management team, you should list any relevant experience that staff or managers hold, along with any qualifications achieved.

Products and services

This section explains the products and services offered by your auto repair shop. 

For example, if you choose a traditional auto repair shop model, this section could look something like this:

Change of oil

As part of our routine maintenance, we recommend that you carry out this service each time you visit our garage (provided it's within a reasonable time frame).

Brake repairs

This includes inspecting the brake pads or checking how smooth the brakes are on your vehicle. Again, this is part of our routine maintenance.

Full diagnosis 

This service includes both of the above and as well as other aspects such as headlights and coolant/fluid levels.

Market research

It's within this section that you'll present the results of the market research we mentioned at the beginning of this article.

The objective here is to demonstrate that there is indeed a viable business opportunity for a new garage in the area you've chosen.

Mention why you have a unique selling point over other auto repair shops and how your skill set helps you in this regard.

In this part, you'll reveal three key plans for your auto repair shop business plan:

  • Your pricing strategy-  the prices you'll set for your services / spare parts / new parts
  • Your marketing strategy -  the actions you'll take to attract customers and build customer loyalty
  • Your risk management strategy -  how you'll minimise the risks related to your business

The operational part

From your employees to your relationship with suppliers, you'll detail the operational organisation of your business within your auto repair shop business plan. 

It's important to mention what suppliers you'll be using to source your spare parts and equipment from. You might have few or many suppliers, depending on your concept.

Also, think about the payment terms that you might obtain with them. Are you a new business? If so, you may need to pay upfront.

The financial plan 

The financial plan puts your numbers into tables that you'll be able to present to potential investors so they get a better idea as to your expected profitability and how much funding you need.

6. What tool should I use to write my business plan?

We've established that to set up your auto repair shop, you need a business plan. What you may not know yet, however, is how you'd like to write it. There are three options available to you:

Write your business plan using Word or Excel

This solution has one major advantage: it's cheap.

Be wary, however, that you'll need to have an accounting background (or at least be very good with numbers) to write your plan in this way without making mistakes in the calculations.

Hiring a consultant to write your financial forecast

Hiring a chartered accountant or consultant to take care of the financial part of your business is a good way to avoid errors. 

However, the fees are generally quite expensive: budget around £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

Using online business plan software for your auto repair shop's business plan

If you're not used to writing business plans, another good solution would be to use our online business plan software .

auto repair shop business plan table of contents

There are several advantages to using specialized software:

  • You are guided through the writing process by detailed instructions and examples for each part of the plan.
  • You can be inspired by already written business plan templates
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you.
  • You get a professional document, formatted and ready to be sent to your bank.

If you are interested in this type of solution, you can try our software for free by signing up to The Business Plan Shop today .

7. Business plan template of an auto repair shop.

A business plan template will give you a better understanding of how to frame your own business plan, as well as what investors are looking for.

Our  auto repair shop business plan template will be off great help to you!

8. Three things you should know before writing an auto repair shop business plan

Firstly, make a list of the potential risks that your auto repair shop could face. This could include both external and internal factors. Think about how you might deal with them efficiently.

Secondly, consider trends that are currently high-flying in the auto repair industry. For example, auto parts are being replaced much less frequently  thanks to advanced technology resulting in greater durability.

Thirdly, the same study also believes that there is a shortage in the number of skilled automobile technicians. This is because several experienced workers have now retired or moved on from the industry.

That's it for now, we hope this article has helped you better understand how to write an auto repair shop plan. If you have any questions related to setting up your business, please do not hesitate to contact us.

Also on The Business Plan Shop

  • Business plan vs budget: what's the difference?
  • How to buy an existing auto repair shop?
  • How to create a financial forecast for your auto repair shop?

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Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Auto Repair Business Plan Template

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How to Create an Auto Repair Shop Business Plan

  • by Sonya Stinson Sonya Stinson is a New ... more
  • January 9, 2020
  • 4  Minute Read
  • Home > Blog > Planning for Growth > How to Create an Auto Repair Shop Business Plan

automobile workshop business plan pdf

Jack’s Car Clinic opened three years ago on a shoestring budget, with some borrowed tools, personal savings and financial assistance from family members. Now word-of-mouth about the auto repair shop’s stellar service keeps a steady stream of customers driving into Jack’s garage. Jack sketched out a loose auto repair shop business plan in a notebook before launching the company, but never got around to formalizing it. Now the business is ready to grow, and a small business loan would help provide the resources Jack needs to expand. To prep for the loan application process, Jack needs to update his business plan to show lenders.

If you, like Jack, are an auto repair shop owner who is facing the task of writing a formal business plan for the first time — or updating an old plan — you may need help getting started.

Here’s a guide to help you develop an auto repair shop business plan that will get your new venture on track for greater success.

Why You Need a Business Plan

It probably doesn’t matter to Jack’s loyal customers that the car shop started up with a business plan that would fit on a repair order form. They only care that the shop’s reliable service keeps their vehicles in mint condition. But a potential lender may require more thorough paperwork to assess whether Jack’s business is a good investment.

If you’re thinking of applying for an auto repair business loan , you can’t afford to put off creating a business plan any longer. A solid business plan may help potential lenders feel confident that you know how to manage an auto repair shop and have a clear vision for how you want to use the loan funds to grow your business.

How to Structure Your Business Plan

There’s no single business plan template, but it’s probably wise to adhere to some of the more common practices and traditional lender expectations.

Business plan styles generally fall into one of two categories, according to the U.S. Small Business Administration : traditional or lean startup. The more common, traditional plans are longer and more detailed, while lean startup plans stick to brief summaries that typically fill a single page, according to the SBA.

Your choice may depend in part on the preferences of the lenders you plan to approach, keeping in mind that some lenders may not require you to have a formal business plan at all. The SBA notes that business owners seeking financing from traditional sources may want to go with a traditional business plan. Other considerations include the complexity of your business and how often you expect to update your plan.

Ultimately, your goal should be to write the auto repair shop business plan that best fits your company’s current needs and guides it to the next stage.

Lean and Traditional Business Plans

The SBA lists nine common elements each for lean startup and traditional business plans, with the former list taken from the well-known Business Model Canvas template, created by Swiss business theorist Alexander Osterwalder.

Sections of a Lean Startup Business Plan

  • Key partnerships – e.g., suppliers, manufacturers, subcontractors
  • Key activities – methods your business will use for competitive advantage
  • Key resources – e.g., staff, capital, intellectual property, networks, organizations
  • Value proposition – your company’s unique value in the market
  • Customer relationships – how customers will interact with your business
  • Customer segments – your target market(s)
  • Channels – ways you will communicate with customers
  • Cost structure – your key business costs and spending strategy
  • Revenue streams – how your business will make money

Sections of a Traditional Business Plan

  • Executive summary – overview of the purpose, leadership, staff and finances of your business
  • Company description – more detailed discussion of the mission, target market, structure, etc.
  • Market analysis – research-based report on industry trends and market competition
  • Organization and management – details about company’s legal structure, key team members
  • Service or product line – what you will sell and how these offerings will help your customers
  • Marketing and sales – your marketing strategy and selling process
  • Funding request – how much money you want to borrow and how you will use it
  • Financial projection – your five-year financial forecast, including budget, income, cash flow
  • Appendix – supporting documents like credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents and other contracts

Car mechanics review auto repair shop business plan

Tweaking the Template for Your Business

Your business plan may be similar to other auto repair companies, or any service business, for that matter. But there are still ways to tweak your plan to make it stand out from the crowd.

Let’s say you don’t have the time to develop a highly detailed, comprehensive plan and you think your business model can be explained in a simpler, shorter plan. For those reasons, you might start with a basic lean startup template and put a special emphasis on highlighting those elements that show your company’s best strengths. For example, you’ll want to highlight competitive edges — like hiring graduates of a top-rated automotive mechanics’ school or using a revolutionary enterprise software system for diagnosing mechanical problems — in the key activities section. Maybe you’ve developed a robust email communications and social media strategy you’d like to tout in the section describing your channels for customer engagement.

If you enjoy delving into the details — or you simply must buckle down and do it to qualify for the financing you seek — the longer traditional business plan format is probably the way to go. You might decide to put extra effort into your market analysis of the automotive repairs industry and sizing up your local competition. If recent trends in your own business have you rethinking your product and service line or your long-term financial projections, it makes sense to focus on those areas when you create a new or updated business plan.

Like Jack, you’ve learned a lot about how to manage an auto repair shop since you put up your sign and saw your first customer drive up. Incorporating those lessons into a vision and plan for growing your business is an essential step in acquiring the financing you need to fuel its success.

Tags: Auto Repair Shops , Managing your Cash Flow , Marketing for Small Business , Small Business Resources

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Here's the Business Plan Template's Table of Contents :

1.0 Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2.0 Company Summary 2.1 Company Ownership 2.2 Start-up Summary Table: Start-up 3.0 Products and Services 4.0 Market Analysis Summary 4.1 Market Segmentation Table: Market Analysis 4.2 Target Market Segment Strategy 4.3 Service Business Analysis 4.3.1 Competition and Buying Patterns 5.0 Strategy and Implementation Summary 5.1 Competitive Edge 5.2 Marketing Strategy 5.3 Sales Strategy 5.3.1 Sales Forecast Table: Sales Forecast 5.4 Milestones Table: Milestones 6.0 Management Summary 6.1 Personnel Plan Table: Personnel 7.0 Financial Plan 7.0 Financial Plan 7.1 Start-up Funding Table: Start-up Funding 7.2 Important Assumptions 7.3 Break-even Analysis Table: Break-even Analysis 7.4 Projected Profit and Loss Table: Profit and Loss 7.5 Projected Cash Flow Table: Cash Flow 7.6 Projected Balance Sheet Table: Balance Sheet 7.7 Business Ratios 7.7 Business Ratios Table: Ratios

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Auto Repair Business Plan Template Market Analysis Summary Sample

Establishments primarily engaged in general automotive repair are classified in Standard Industrial Classification (SIC) code 7538: General Automotive Repair Shops. According to Integra Information, annual revenues for those companies in SIC 7538 increased by an average annual rate of 3 percent between 2000 and 2002, but picked up significantly in 2003 and 2004 (see  Table 1  ).   

Table 1:   Industry Revenues: SIC 7538 - General Auto Repair Shops

Source:   Integra Information

Demand for auto repair services depends on the number of registered vehicles and how much the vehicles are driven. Americans love their cars, and despite the current oil crisis continue to increase the number of miles they drive each year. The number of motor vehicles registered each year fluctuates. In 2001, 136,341,000 cars were registered in the U.S.; in 2004 the number of registrations was 135,077,000. Auto repair shops will benefit from the fact that the median age of vehicles in use is increasing; from 1990 to 2005, the median age of cars in use grew from 6.5 years to 9.0 years. Outlook According to its stock performance AutoZone  Inc. for the period 01/02/ 2010 to 07/05/2010  share price rose from $158.07 to 195.01 an increase of +23.37%, which reflects an increase in aftermarket parts and independent repair shops purchasing. This is caused by a change in mentality of the customer who now seeks better value through a do-it-yourself means of saving money or by allowing an independent shop to make the replacement for them.

According to the ASA 2005 "How's Your Business?" survey, auto repair shop owners are positive about the near-term market; 71 percent of mechanical businesses polled expect annual sales for 2006 to increase. Integra Information forecasts average growth rates for collision repair shops will increase by 3.46 annually between 2005 and 2009 (see  Table 2 ). Table 2:   Industry Revenues: SIC 7538 - General Auto Repair Shops

Source:   Integra Information The U.S. Department of labor expects employment of automotive service technicians and mechanics will "increase as fast as the average" through the year 2014 because of the number of registered cars continues to be substantial. However, demand growth will be offset slightly by a slowing rate of population growth and the continuing rise in automobile quality and durability.

4.1 Market Segmentation

COMPANY NAME market segmentation scheme is straightforward, and focuses on the target market, customers within the Auto Parts Industry. These customers prefer certain products and services and its the Company's duty to deliver on their expectations.  COMPANY NAME services clients throughout Burlingame, in San Mateo County, it also has corporation who have fleets of cars or trucks as well as non-residents among its market. 

Table: Market Analysis

4.2 Target Market Segment Strategy

COMPANY NAME  choice of target markets is based on comprehensive experience within the auto parts industry coupled with an in-depth understanding of the customer's needs.  By capitalizing on word of mouth and local advertising, and websites like Yelp (which has driven a 4.8 percent customer increase per month), the Company's strategy is to increase its clientele by offering a full line of service by acquiring a transmission repair company.

4.3 Service Business Analysis

According to the Automotive Aftermarket Industry Association, motor vehicle aftermarket is a significant sector of the U.S. economy employing approximately 4.3 million people in 2008. This industry encompasses all products and services purchased for light and heavy-duty vehicles after the original sale including replacement parts, accessories, lubricants, appearance products, tires, collision repairs, service repairs as well as the tools and equipment necessary to make the repair. Overall aftermarket sales totaled $280.7 billion in 2008, representing an increase of 0.2 percent over the previous year. Sales in the automotive aftermarket (cars and light trucks) totaled $210.2 billion while sales in the heavy-duty vehicle aftermarket totaled $70.5 billion.

4.3.1 Competition and Buying Patterns

Clients choose auto parts and services based on proximity to their home and work, reputation for a full line of parts, quality service, and good pricing. With the success of the grant funding, COMPANY NAME will be able to offer a full line of services and parts. Another important factor in gaining business is the ability to schedule clients at a moments notice, which will weed out the Company's competitors from nearby neighborhoods, that may have put the client on a wait list for the following day.

COMPANY NAME has clearly defined the target market and has differentiated the Company by offering a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved.

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Auto Repair Business Plan Sample

NOV.11, 2016

auto repair shop business plan

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

  • Understand the market needs and tailoring the services right
  • Managing their resources well
  • Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

  • Professional Automobile Drivers
  • New Car Owners (Households/ Individuals)
  • Used Car Owners (Households/ Individuals)

2.4 Business Target

  • To achieve an NPS score above 80 within two years of our launch
  • To achieve a CSAT score of 95 to 98% within a year of our launch
  • To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Auto Repair Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Auto Repair Business Plan - Startup Cost

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

  • Automobile engines
  • Automobile exhaust systems
  • Automobile brakes
  • Automobile radiators
  • Ignition System
  • Electric repairs
  • Spark plug, fuel cap, and others
  • Tire pressure monitoring
  • Wheel alignment
  • Regulating radiator fluid, brake fluid, transmission fluid, etc.
  • Maintaining car’s air conditioning system
  • Installing Efficient air filters
  • Installing the latest stereo system
  • Brake discs
  • Backup camera
  • Turbochargers and more
  • Seat covers
  • Dash covers
  • Fuel consumption meters
  • Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Auto Repair Business Plan - Marketing Segmentation

5.2.1 Professional Automobile Drivers

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services.

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To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

5.3 Business Target

Our business targets are:

  • To earn a net profit of $24.5k per month by the end of the third year
  • To obtain a repeat purchase rate of 80% throughout our service years
  • To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
  • To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

  • Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
  • We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
  • Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

  • We’ll advertise our startup through posters, Google Local ads service, and social media.
  • We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
  • We’ll offer a 50% discount on our services for the first month of the launch.
  • We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

Auto Repair Business Plan - Sales Monthly

6.4 Sales Yearly

Auto Repair Business Plan - Sales Yearly

6.5 Sales Forecast

Auto Repair Business Plan - Unit Sales

Personnel plan

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

  • 1 Supervisor to help in the management
  • 8 Auto Mechanics to perform the major work
  • 2 Technicians to provide overall support
  • 1 Database Manager to manage company’s sites and arrange video calls
  • 1 Accountant to maintain financial records
  • 1 Front Desk Manager/ Call Operator
  • 2 General Assistants
  • 1 Sales Executive

7.2 Average Salary of Employees

Financial plan, great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

8.2 brake-even analysis.

Auto Repair Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Auto Repair Business Plan - Profit Monthly

8.3.2 Profit Yearly

Auto Repair Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Auto Repair Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Auto Repair Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Auto Repair Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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  • Business Templates
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FREE 3+ Auto Repair Service Business Plan Samples in PDF | MS Word | Apple Pages | Google Docs

auto repair service business plan samples

Auto repair shops should be present anywhere; they fix cars that have broken down or repair any issues of a vehicle to avoid further problems and complications that may escalate that could result in accidents and mishaps. Auto mechanics are skilled people who are experts in handling and fixing vehicles parts and installing them safely into the vehicle. If you’re an auto mechanic and you want to open a business where you can repair troubled cars, one of the first things you need to do is create a business plan. A business plan will serve as your roadmap on which areas your business must follow to ensure you get to the right destination, and the destination is the success of your business. Read the article to know how to write an auto repair service business plan.

Auto Repair Service Business Plan

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auto repair service business plan

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An  auto repair shop, or also known  garage  or a  workshop  is an establishment where vehicles are repaired by auto mechanics and technicians. They offer various repair services for vehicles. Some common services they offer include:

  • Refilling oil
  • Changing oil filter
  • Replacing wiper blades
  • Replacing air filter
  • Scheduling car maintenance
  • Providing new tires
  • Replacing batteries
  • Fixing and maintaining brakes
  • Adding antifreeze accessories
  • Tuning up engine
  • Balancing and aligning wheels
  • And many more!

Start your business plan with a cover page where you put down your information such as the name of your auto repair shop, its address, your name as the owner, and the date when the plan is completed.

The next first section of the business plan is the  executive summary . This section provides an overview of each section of your business plan. Make sure this does not exceed more than one page. It should highlight your mission statement, its business structure, its scope of work, the services you offer, the requested amount of funding from investors, your total investment in the business, and your long-term goals for your business.

This section is where you describe your auto repair shop  company . Include details such as the location of the shop, its entity, details of your repair shop, the services you offer and its pricing, the history of your company, and the nature of your business. Include details of your target customers, the purpose why your business exists, and your advantage compared to your competition. Attach all the permits, certifications, and licenses you acquired that let you operate your business legally.

This section is where you comprehensively describe details of your fish farm, including construction costs, ease of operation, and productivity, the equipment, vehicles, tools, fixtures, furniture, and other inventory items that are required to run your business. Include other important details such as the topography and zoning details of your business location.

Don’t forget to include details of your data management and  risk management . Explain how you store and use your data without a threat of breaching confidential information and explain your procedures on how you identify risks in your business and how you address them to prevent unfortunate circumstances from happening.

This section is where you describe your organization details such as your staff and your management. List down the names of all your mechanics and include their professional background information such as employment experience, professional training, and education, certifications, or degrees held related to the auto repair services. Below the list, make a chart of your  organizational structure  where you describe each employee’s job position and to whom they report. Don’t forget to include information regarding your contractors (if you have one) who provide you with equipment or products that you will need for your business.

The marketing plan is where you describe how you’re going to advertise and promote your business to your customers. All you need to write is to describe your target market and the location of the business. Then describe your marketing strategies that relate to your target customers. Describe how your strategies can bring your target market to your shop and help you earn profit.

The last part of your business plan is your financial plan. This is where you include details regarding your finances and your financial projection for your business in the coming years. Here are the following details that you should include in your plan:

  • competitive advantage
  • sales forecasts and  financial assumptions
  • measures of success
  • financial worksheet to calculate the money you will ask from investors or lenders
  • breakeven analysis
  • bookkeeping
  • rational analysis
  • business financing
  • personal income tax return
  • business and personal income statement
  • cash flow projections
  • profit and loss statement

Yes, an auto repair shop is highly profitable since most car owners will need services from the repair shop to fix their cars. Annually, a repair shop can earn $100,000 o average.

The cost varies depending on the equipment, facilities, insurance, inventory, accounting , marketing, and administrative fees that you have. The approximate cost to open an auto repair shop is over $37,000.

After drafting your business plan, review and revise any errors or inaccurate information that you’ve spotted. Take note of how you write your business plan too. Make sure it sounds formal but it’s comprehensible and concise. If you’re head is swimming with too much information, leave your business plan for a day or two and come back to it and check if you need to add more information or if it needs more revision. To help you get started on making a business plan for your auto repair shop, download our free sample templates provided above!

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Sample Auto Repair Shop Business Plan

Automobile business plan pdf sample.

What are some new business ideas in the automobile industry ?

If you are so passionate about starting an automobile business of your own, this is indeed a great time for you to do so because by mere looking around, the market for mobile car repair is by this time experiencing a great deal and large margin of profit.

These are some areas to invest in the automobile industry:

  • Automobile repair
  • Automobile transport
  • Automobile spare parts
  • automotive oil change
  • armored, exotic and RC car
  • car audio business
  • roadside assistance

Here is a sample business plan for starting an auto repair service workshop.

Starting an automobile business on your own is not a bad idea and I shall, therefore, write you some significant steps to follow to make your dream comes through. The steps will be broken into three segments or parts regarding the top 10 automotive business ideas.

The First Segment (The Automobile Business Plan)

Here in this segment, we shall look critically at what those requirements you need to meet before the business can be classified as standard. The first thing to do when creating a business plan for the automobile industry  is;

Plan your business Niche

Starting an automobile business of your own requires you to plan for the business thoroughly by having in mind the specifics number of potential customers to cater to, how many vehicles or cars will you attend to in a day, and how many workers will you hire. All these needs plan before going further.

It will speak well of you to decide from inception on what niche of automobile you will base your business on, are you going to specialize on tire repair, engine repair, or changing and gauging of oil, or will you just go for the comprehensive or general repair of the mobile car?

You need to make up your mind whether to buy off one workshop that has been in existence or you start your own fresh, juxtapose the cost and benefit between buying existing and starting a new auto repair service or automobile detailing business.

Identify Your Location

Automobile business or franchises like Cottman and AAMCO transmission requires a definite location where your potential customer can easily locate and recognize you. Look for a location that is near to road, highway, or traffic access, avoid sitting your automobile business shop in a seclusion area, you will have low patronage.

Also, your workshop or your location should have an office for you to look after your customers and other administrative works for most successful small business ideas in the automobile field.

Get the Equipment needed Ready

Do you know the right equipment and premises to start an auto repair workshop? The next thing that will cost you to spend largely in the course of establishing an automobile is getting and buying the equipment required ready. It wouldn’t speak well of you to be renting and borrowing tools here and there but to have yours is just the best.

Write the Capital Involved

Ranging from the money spent on location, tools, insurance, the salary of the worker, and other things in the course of opening the business opportunities in the automobile sector.

How to Start My Own Auto Mechanic Shop

State your U. S. P

The meaning of USP is, “Unique Selling Point”. Your U.S.P is your competitive strength that will make your business known, you need to vividly and clearly state your unique selling point, what your workshop will offer your customer that no other or competitor would, is it the easy turning center you will provide or cut down your price?

Identifying your unique selling point will help you to bring, fetch, and attract customers before the opening.

However, the aforementioned are the first segment you need to put into consideration, haven’t done that, move to the next step without hesitating.

Second Segment (Opening the Automobile Workshop)

The second segment shall talk about the necessary things you are to do when your workshop just kick start.

Obtain License and other Documents

Different country and different states have their conventional ways of getting their license done. Make any payment when required to get certain documents sign to prevent any form of obstacle in the future.

Ensure your Business

Check and ask around for the steps to follow in getting this done in your state.

Strategize your Market

For you to liberate and breakthrough through any forms of car service business ideas, you need to relate very well with your customers. Define in detail your major values, and let them have trust in you.

You can go further by advertising your automobile business ideas in India through media outlets as it is considered as the only medium that can reach countless numbers of audiences within a short period.

Strike a Deal with Car Dealers

Endeavor to ally with car dealers because some or majority of them have their automobile shops attached to them, but if you can strike a deal with them, they can in return direct customers to your workshop.

Third Segment (Enlarge Your Coast)

This is the last segment and it is basically on how one can start an automobile business. It consists of the methods you can adopt to spread your wing to different areas.

Going for Home Service

You can go to the customer’s home to do some minor works as such it will bring more about familiarity and they will trust and depend on you more.

Split into Branches

If you find out that your automobile business opportunities have gone viral and you’ve gain ground, have many and different customers, why don’t you consider opening other branches somewhere else?

By so doing, make sure the manager in every branch is reliable but if you realize that you haven’t seen anyone who fit for such position, you needn’t enlarge the coast of your  automobile business at all cost.

How to Start an Auto Repair Shop

An auto repair shop is increasingly in demand these days, fuelled by an ever-increasing number of car owners both in the developed and the developing world. As demand for auto repair shops grow, there is an accompanying demand for professionalism among clients, and continuous innovations both in the way clients are handled and in technology.

This article focus on how to start an auto repair shop, with important tips, which when used will greatly help in bringing about the much-needed growth needed by the entrepreneur. We begin with the following tips which effectively answer the question bothering on how to start an auto repair shop;

  • Have in Place a Well Written Business Plan

This is a critical ingredient necessary for the success of any business enterprise. For an auto repair shop business, a business plan charts the way for the future of the business. It contains all the details from the least to the greatest.

The advantage of having in place an effective business plan is that it eliminates guesswork or second-guessing. It sets clear what should be done and at what time it should be done. Dedicating time to writing this business plan will prove helpful at the end of the day.

  • Ensure that Your Auto Repair Shop is Licensed

To start an auto repair shop, certification is key to the realization of meaningful success. However, getting certification requires that the individual well trained, as your skills will be tested through a certification test.

A licensed auto repair shop gives more confidence to your clients on your capability of taking care of their vehicles.

Being licensed attracts more clients to your business leading to business growth.

  • Fully Understand the Cost Implications of Starting One

This is critical to the success of your business venture. Without having a hang on how much exactly is needed, or having a projected cost, the entrepreneur is most likely to work blindly which results in insufficient funds to follow through with the business, resulting in an uncompleted business venture.

To avoid this, get an expert in valuation in this field, plus know exactly the tools needed and their cost implications.

Although the costs of tools might sometimes fluctuate, it is safer to have a cost range to work with than not having at all.

Seek Legal Guidance

This is a requirement for any meaningful business venture. This guides the entrepreneur to avoid pitfalls that might be caused by being ignorant of the business laws and other legal frameworks. Also, seeking legal guidance helps the entrepreneur avoid pitfalls that might result in the closure of the business.

  • Location is Key

In starting an auto repair shop, location is a key component that must be considered. Location boosts the chances of succeeding or failing.

With the right location, the auto repair shop is likely to experience increased patronage. For an auto repair shop, an area with lots of traffic will be most ideal. This adds an advantage of increased visibility to the business enterprise, leading to more clients.

An auto repair shop located in a small town is more likely to attract fewer clients compared to the one located in a densely populated area where there are typically more vehicles.

  • Put In Place an Effective Publicity and Advert Structure

This should be a very important consideration to make. How well your business does largely depends on how effectively you market your business. Your business should have in place a marketing department that will formulate the best advert and publicity strategies to adopt.

Some of the strategies to be adopted might include the set-up of an easy to use the website, accompanied by the creation of incentives such as a guarantee of services done plus a few free automobile maintenance services to new clients.

  • Selecting Your Work Force

This will determine how far your business goes. An effective workforce will result in a well-run business. Having employees that have huge experience in the automobile service industry results in a business that will effectively compete with its larger competitors because its workforce understands the dynamics of the business environment and drive the business in the direction of growth and profitability.

  • Buy all the Necessary Tools and Equipment Necessary for Smooth Operations

To start a successful auto repair shop, there have to be tools which must be standard and of the right specifications. These will help the business to function effectively with minimal disruptions.

All the required tools must be put in place before opening for business. This is because different clients with different auto repair needs will become a constant feature. Each of these requires the use of certain tools. Without these, there will be an inability to meet the client’s expectations, resulting in loss of confidence.

  • Hire the Services of A Financial Advisor

The services of a financial advisor’s such as an accountant are very key to the success of the business enterprise.

Running a business without the guidance of a financial advisor is an invitation to disaster. The financial advisor will arrange the cash flow system to ensure efficient management of resources including the payroll system of the business.

The tips given on how to start an auto repair shop are key to the success of any auto repair shop business, as they help in creating a defined line of action to be taken by the entrepreneur. This is a business venture that requires careful planning and implementation. The elimination of any haphazard process increases the chances of success.

How to Start a Brake Repair Service Business

The automobile repair industry has been in existence from the time the first automobile was rolled out from the manufacturing plant. From that time to this present day, the growth experienced in this industry has been astronomical.

A lot of vehicle models have since emerged each with different designs, but working on the same principle. Since then, a lot of improvements and innovations have been made resulting in hybrid automobiles.

The auto repair industry has witnessed a huge transformation, resulting in the emergence of different specializations within it. It is no longer as it used to be before, where a single automobile technician/mechanic handled every aspect of automobile repair. Today, there are many areas of specialization in the auto repair industry.

Some of these specializations include car engine repair, vulcanizing, brake repair, wheel alignment , and auto electrical repair among others.

This article focuses on how to start a brake repair shop business. Being an area of specialization in the automotive repair industry, the right knowledge on starting this business must be made available to interested individuals who possess the right skills on brake repair. This is a guide to help entrepreneurs successfully start their brake repair shops. These are the necessary steps to take;

Obtain Certification

Obtaining an ASE professional certification is necessary if you want to be taken seriously by new clients. An ASE certification stands for the certification given by the National Institute for Automotive Service Excellence. This professional body is tasked with the responsibility of certifying professionals and all forms of auto repair shops in both the United States and some parts of Canada.

This certification speaks volumes about your ability and gives added confidence to your clients. Another importance of obtaining this certification is the opportunity for applying for financing. Without an ASE certification, it will be difficult to obtain financing for your brake repair shop business.

Have a Good Knowledge of the Cost Implications

The startup costs must be taken into account by the entrepreneur. Without a good knowledge of the startup costs and proper financial planning, the entrepreneur is bound to have financial difficulties which are inimical to the growth of the brake repair shop.

Factors to take into account the cost implications should include the purchase of the right equipment and the money to be expended on rent. These among several others should be well planned to avoid future problems.

The importance of legal guidance cannot be overemphasized. To avoid any costly mistakes that may occur in the future, the services of a lawyer should be strongly considered. Legal advice guides the entrepreneur by ensuring that the business is patterned around the existing legal framework, without violating any. The whole process of registering the business, organizing the business, and employment plus the payroll system needs to be vetted by a lawyer.

The Business Plan

The success of a brake repair shop business largely depends on a business plan. The business plan should not be hurriedly written but must involve the input of experts such as the services of professionals like accountants, a lawyer among others. These check the reliability of the brake repair business plan and easily identify where there are red flags.

Producing a well-written business plan greatly impacts the success of the business. The business plan is the working document of the business and includes all the things to be done and the timeframe they should be carried out. The good news about this is that there are professionals whose business is to write good business plans for businesses.

Using their services helps the entrepreneur avoid mistakes. However, after writing the business plan, it should be taken to a lawyer for review.

Know Your Competition

To effectively deliver services to clients, it will do well to have a good knowledge of your competition. Within the business area, how many people are offering your type of services? Are their services affordable? What areas of the gap have you noticed in their services that you can easily fill? The success of your brake repair shop depends on answering these questions satisfactorily.

Location is Golden

Starting a successful brake repair shop business strongly depends on the location. The location of the business will likely determine profitability and turnover. A brake repair shop sited in a sparsely populated neighborhood is likely to witness low patronage as compared to the brake repair shop sited in busy neighborhoods or a Central Business District (CBD).

When starting your brake repair shop, strongly consider locating such in busy centers where there is high vehicular and human traffic. In such areas, you are more likely to have a higher level of patronage than areas where there is low vehicular and human traffic.

Develop an Effective Advert and Publicity Strategy

To grow your client base significantly, effective advert and publicity strategies need to be put in place. The presence of a business should be increased. This can be achieved through the use of publicity tools such as the internet, social media, electronic and print media, and the adoption of the word of mouth marketing.

These if effectively put into action will increase the patronage of your brake repair shop significantly.

Focusing on how to start a brake repair shop business , the above guidelines are an effective way of establishing your business in the path of growth and sustainability.

AUTO REPAIR SHOP BUSINESS PLAN EXAMPLE

With so much potential in the auto repair industry and franchises like AAMCO, and its potential for further growth, this area of business has continued to attract the attention of entrepreneurs.

However, the planning stage for every business enterprise requires that such a business should have a working document, which is usually what the business plan represents.

This article will be paying close attention to the auto repair service business.

This article provides the basis for guidance to entrepreneurs that fall within this bracket of entrepreneurs. It will be anchored under the following;

  • Executive Summary
  • Products and Services

Our Mission

Competitive Advantage

Target Market

Sources of Revenue Generation

Sales Projection

  • Payment Channels
  • Publicity and Advert Strategy

Mike’s Auto Repair is an auto repair shop to be located in Atlanta. Specialized in the provision of auto repair and maintenance services for vehicles that include trucks, buses, vans, trailers among several other car types, it is a fully licensed business that eventually plans on spreading its reach beyond Atlanta, to other states within the United States.

We intend to compete favorably with other similar service providers, with plans on hiring the best hands with impressive track records and years of experience. We will be channeling all our resources and efforts at ensuring that client satisfaction becomes a reality.

We will be offering a variety of products and services that will include the repairs, service, and also the maintenance of automobiles. This is in addition to services that include training and certification of auto technicians and also the sale of auto engine accessories .

Among the services to be offered is the repair of damaged vehicle transmissions of all car types, wheel balancing and alignment , fixing of damaged vehicle electrical fittings, repair, and replacement of mufflers, exhaust systems, repair, maintenance, and service of the truck, car, and other vehicle engine types.

Our mission is to be among the top 10 auto repair shops within the first 3 years from the commencement of business operations like auto body repair. Through the provision of highly professional and efficient services driven by a dedicated and well-motivated workforce, we intend to build a brand name synonymous with service excellence and total client satisfaction.

Driven by a commitment to satisfy our esteemed clients, we plan on eventually spread our outlets to cover more states within the United States. This will also involve a deliberate effort to grow our client base to impressive levels.

To achieve this, we will focus on encouraging our satisfied clients to spread the word about our services for an incentive such as discounts in repairs, maintenance, and servicing of their automobiles.

An area that gives us an advantage over other similar businesses is our special attention to detail. With a quality control department headed by seasoned professionals, we will ensure that only the best services are rendered to clients by our technicians.

Also, all our workforce will be adequately motivated through the provision of work-friendly environments, attractive remuneration packages; all aimed at ensuring our workforce achieve job satisfaction.

With an ever-increasing number of people using vehicles and automobiles, there is ever-expanding business potential for an auto repair, maintenance, and servicing. Hence, our target market will be diverse and will include individuals, businesses, and corporate clients.

Some of these include transport companies, individuals and households, corporate organizations, schools, financial institutions among several other potential clients.

Our revenues will be realized by the diverse services and products offered by us. Some of these areas where are revenues will come from including the fixing and servicing of vehicle brakes, wheel alignment, repairing, servicing and maintenance of vehicle exhaust systems, replacement, repair and servicing of car mufflers, and all general automotive repairs including the training sessions to be conducted for all new auto repair technicians. These and others will form the bulk of where our revenue will be generated.

Using the current potential within the industry, we have drawn a three-year sales projection that will see our revenue increasing considerably to health levels. This however discounts major factors as natural disasters such as earthquakes, hurricanes among others, and also economic recession.

Our sales projection is briefly represented by the chart below;

  • First Year $140,000
  • Second Year $210,000
  • Third-year $290,000

Payment Channels We will be introducing a wide variety of payment channels that will ensure that difficulties faced due to limited payment options are eliminated.

To achieve this, we will be using POS machines for payments, acceptance of credit cards, mobile banking acceptance of cash payments among several other payment options as may be available.

Publicity and Advert Strategies

To adequately inform our potential clients of the services provided by us, we will be adopting multiple publicity and advert measures aimed at considerably increasing our client base.

These measures include paid adverts in both electronic and print media, the use of social media channels, the printing of flyers and handbills, and also the reliance on the word of mouth marketing which has been and continues to be effective.

Satisfied clients will be encouraged to spread the word about our services to their relatives, acquaintances, and friends.

This auto repair shop business plan sample has been specifically written to guide entrepreneurs with little or no understanding of how to adequately and correctly write an auto repair shop business plan sample. While following the guidelines provided, all they have to do is simply brainstorm on what is unique to their small auto repair business.

AUTOMOTIVE BUSINESS PLAN PDF SAMPLE

This article presents you with an automotive business plan sample that will serve as a template for writing a good business plan for your automotive business.

No doubt, you must have avail yourself of all the requirements you need to get started with your automotive business, and I know you are not here to read about how to start up a small automotive business. So, let us get right to business!

SAMPLE AUTOMOBILE RELATED BUSINESS PLANS:

AUTO MECHANIC , MOBILE CAR WASH , AUTO DETAILING , TOWING TRUCK , TIRE SHOP , DRIVING SCHOOL , TIRE RECYCLING , SELF SERVICE CAR WASH , FOOD TRUCKING, AUTOMATIC CAR WASH,  SMALL ENGINE REPAIR , GPS VEHICLE TRACKING , CAR SERVICE CENTER , TIRE RETREADING

Are you interested in starting up an automotive business, and are looking for an automotive business plan sample to serve as a useful template to help you write a business plan for your automotive business or transmission repair franchise?

BUSINESS NAME: Gentle Jimmy Automotive Company.

  • Vision Statement
  • Mission Statement
  • Business Structure
  • Market Analysis
  • Sales and Marketing Strategy
  • Financial Plan
  • Sales Forecast

EXECUTIVE SUMMARY

Gentle Jimmy Automotive Company is a fully registered and licensed automotive business. The Company will be located in one of the industrial zones of Ohio, United States. Our company will be concerned with providing the following services such as mechanical and electrical repairs and maintenance services that involve cars, trailers, trucks, et al.

Jimmy Sullivan will be the owner and the Chairman Executive Officer (CEO) of Gentle Jimmy Automotive Company.

The startup investment that will be required is a $300,000 sum. $100,000 of it will be contributed by the owner, Jimmy Sullivan, from his savings and investments. $50,000 will be borrowed from the owner’s close friends and family, while the remaining $100,000 will be obtained as a loan from the owner’s bank.

VISION STATEMENT

Our vision at Gentle Jimmy Automotive Company is to be renowned as the standard and world-class automotive company whose products and services will be accepted not just in Ohio but all over the United States and even all around the globe.

We will ensure we achieve this vision by making sure we do all that is permissible under the laws of the state and the United States.

MISSION STATEMENT

Our mission is to deliver quality and professional automotive-related services such as auto repair, maintenance services, to our customers, which will assist them in making sure that their automobiles are always in shape and top quality. Nonetheless, our company will be ready to compete favorably with the other top companies in the industry.

BUSINESS STRUCTURE

Our company, Gentle Jimmy Automotive Company, is an automotive company that hopes to start on a small scale in Ohio. In subsequent years, probably five to six years after startup, we hope to grow our business big to the level where it can favorably compete with other top and leading brands in the automotive industry in Ohio and the United States at large.

We are aware of the importance of building a very strong business structure that is capable of supporting and guaranteeing us the prospect of actualizing our business vision of becoming a renowned standard and world-class automotive company in the United States.

This is why we will ensure we hire only the right employees for our business, who are ready to work for us and work with us in actualizing our dream. We will only accept into our business, candidates that are hardworking, competent, driven, customer-centric, and have some measure of experience in the automotive industry.

Our employees will be hired based on their performance in an interview session that will be organized by us. In no particular order, the following are some of the positions to be filled:

  • Auto Garage Supervisor.
  • Sales and Marketing Executive.
  • Automobile Repair and Maintenance Engineers/ Technicians
  • Accountant.
  • Client Service Executive.
  • Human Resources and Admin Manager.

PRODUCTS AND SERVICES

At Gentle Jimmy Automotive Company, our aim in the automotive industry is to maximize profits and minimize costs as practicable as possible under the laws of the United States.

Our focus is not to simply offer services to customers, but to make sure we offer the best in the industry. We want to establish our business to be able to completely compete with other businesses in the industry.  This is why we will offer products and services that include the following:

  • Repair and replacement of automotive engines.
  • Power train repair services.
  • Scheduled and preventative repair and maintenance services.
  • Truck repairs.
  • Repairs and replacement of mufflers.
  • Repair of automotive transmission.
  • Repair of automotive radiators.
  • Repair and replacement of automotive exhaust systems.
  • Repairing of general automotive.
  • Several other repairs and maintenance services.

Jimmy Sullivan will be the owner and Chairman Executive Officer (CEO) of the automotive company.

MARKET ANALYSIS Market Trends

One good market trend in the industry whether in developed or developing countries is the fact that one could find steady growth in the automotive industry. In the last few years, the industry had grown so well in the United States that the growth rate is even projected to increase in subsequent years.

Our target market includes the following key groups:

  • Financial Institutions such as Banks and Insurance Companies.
  • Corporate Organizations.
  • Transport Companies.
  • Blue Chips Companies.
  • Manufacturing and Distributing Companies.
  • Individuals and Households.
  • Haulage Companies.

SALES AND MARKETING STRATEGY

We will ensure we hire some of the very best experts to attend to our sales and marketing needs. We are well aware that the competition in the industry is very stiff, hence we will make sure our experts are very proficient in deducing formidable sales and marketing strategies to be able to keep our competitors at bay and shoot our company to become rated among the leading automotive companies in the United States.

We will start by introducing our automotive business and our services to the relevant groups such as the transport companies, corporate organizations, et al; which we will do by sending our brochure and introductory letters to them.

We will ensure we also list our business in yellow pages ads. We will also advertise our company and services in relevant business magazines, newspapers, and on radio and TV stations.

We will also leverage the internet and social media world to make sure we advertise our business. Also, we will have a functional website that our customers can log onto.

FINANCIAL PLAN Startup costs

A total estimated sum of $300,000 will be required to start up Gentle Jimmy Automotive Company in Ohio, United States.

Sources of Funds

A total sum of $100,000 will be contributed to the owner’s savings and investments. $50,000 will be borrowed from the owner’s friends and family, and the last $150,000 will be obtained as a loan from the owner’s bank.

SALES FORECAST

The following is a sales projection for Gentle Jimmy Automotive Company for the next three years.

Year One                     $300,000 Year Two                   $800,000 Year Three                 $1,000,000

This sales projection has been done based on various factors such as the location of our automotive business, and other obtainable statistics in the automotive industry. Nevertheless, this projection has not considered the emergence of any major competitor within the same location. Also, this projection has not considered the occurrence of any major economic meltdown.

The business plan sample in this article is an automotive business plan sample. This business plan sample has presented all the key areas of the business that will demand attention. It has presented the executive summary of the company; the vision and mission of the company; the products and services of the business to their clients; and the sales and marketing strategy to achieve their set out a business vision.

It can only be hoped that this business plan sample will serve as a useful template for enabling you to write a good business plan for your automotive business.

Related posts:

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  • Sample Cell Phone Repair Shop Business Plan

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automobile workshop business plan pdf

How to create a marketing plan for an auto repair shop

The automotive service industry is a multi-billion dollar market in the United States alone. There are thousands of independent shops and large chains competing for a piece of the pie. 

As an auto mechanic and business owner, you might think the only thing necessary for your auto repair business to succeed is to have a great business plan. But have you ever thought about how marketing plans can influence your small business and help you amplify what you’re already doing well?

Marketing plans are an essential part of the success of any small business and an often overlooked part of creating a small business plan. 

In this blog post, we will go over the basics of how to create a marketing plan for your auto repair shop so that you can scale your business and stand out from the competition. 

Free Guide: How To Set Up Your Google Business Profile

What goes into a marketing plan.

Before we can dive into marketing ideas for your shop, it’s essential to understand what goes into a marketing plan. 

They are made up of several main components: the market, objectives, and action steps. There isn’t a single, perfect way to execute a marketing strategy; instead, it’s more of a learning experiment.

However, there are a few key things to consider when creating a marketing plan for an auto repair shop . The first step is understanding your business, its goals, and what makes your business unique. 

Start by answering some questions

Many small businesses make the mistake of trying to drive business without understanding your audience’s needs. 

Understanding this and involving this data in all of your marketing decisions will help your business better deliver what your customers are looking for, and in return, allow you to see a greater return on investment (ROI) for your marketing efforts.

Start by asking yourself these simple questions: 

  • What services do we offer? 
  • Who is our target market? 
  • What do we have to provide them with?
  • How will we ensure excellent customer service?

Once you understand what your customers need from you, you can start developing marketing strategies that resonate with customers. 

For example, your auto repair services may include routine oil changes. If your customers need one every 3,000 miles, you might initiate a direct mail campaign sending oil change coupons to those current customers who are due for an oil change. 

This is just one way to keep a loyal customer base that can eventually provide thoughtful testimonials and ultimately participate in a referral program by recommending their family and friends for your service. 

Set your business goals

Drawing a line on what you want to achieve is the best way to begin charting the path forward for your business. 

If you don’t have a goal to reach, how will you know whether or not you’ve succeeded? How will you know where you need to improve to attract more business? Deciding on your business goals is an essential part of your marketing plan. 

For example, if one of your goals is to increase sales and create more long-term, happy customers, you might include tactics in your marketing plan to incentivize first-time customers to keep going to your shop.

Set your budget

Auto repair shop marketing is just one part of your business. It can’t use up all of your available capital and, at the same time, shouldn’t be ignored. 

Setting aside a budget for your efforts will help you understand how much you can invest and give you a better idea of how much ROI you can expect in return.

Take a benchmark measurement

If this is your first time running a marketing plan, remember to take a benchmark measurement of where you’re at today, so you have something to measure your marketing plan against when it’s time to evaluate how well your plan worked.

For example, if your marketing plan goal is to increase the number of new customers obtained in a month by 10%, it would be helpful to know how many customers, on average, you currently gain in a month.

How to market an auto repair shop

Creating a marketing plan for an auto repair shop can be difficult because of the many different ways to market the business. However, all marketing plans, regardless of the niche, need the same elements discussed in the previous section.

Once you’ve gone through those steps, you can get more specific on which strategies will serve your customers best. Even though you are not a marketer, you know your clients and services better than anyone. 

Here are some tips on how you can put that knowledge to work for your business. 

Create a website

First, it’s crucial to have a place where customers can find you. While being present via business listing sites like Yelp is essential, having your own website can prove very beneficial in attracting more clients. 

It’s also essential to make sure your business page or website is checked for search engine optimization (SEO) so potential customers can find you when searching on the web. 

Essentially, search engine optimization just means incorporating those key terms that customers are searching for. 

An example might be including “local auto repair shop in San Francisco” on your home page, as it’s likely most of your customers are searching the web and using a similar phrase.

Having an online presence to help customers find you is just one of the many website benefits you can take advantage of.

Use Word-of-Mouth

This has to be one of the oldest marketing tactics in the book and one you’re sure to be familiar with. 

Mechanics can attract new customers by providing quality service and excellent customer care for existing customers. 

In turn, you can ask that your clients let others know about their experience by referring their friends and family or by leaving a positive review for your business on Google, Yelp, or other business listing site.

Advertising is another one of the most common ways to enhance auto repair marketing . There are many different types of advertising, and each has its advantages and disadvantages. 

Some common forms of advertising include using the ads manager for social media sites like Facebook or running Google ads. 

While word-of-mouth is excellent for your current clients, paid ads can help you reach a broader audience that might not know your business exists yet.

Email marketing

Email marketing is another way to stay in touch with your existing customers. 

When people become customers, you can reach out to share upcoming promotions and nurture those relationships by collecting email addresses.

Furthermore, staying in touch with your existing customers ensures that your business remains top of mind for them and that they return to your auto shop for future service needs.

Social media marketing

Have you ever thought of using social media marketing for your auto repair shop? This marketing strategy can help you establish a greater online presence than your website alone because it puts your business where people are already hanging out online.

Social media platforms like Facebook, Twitter, and Instagram are a great way to connect with your customers and increase brand awareness for your business to local customers that might need your services. 

You can share photos of your work, post updates about new services or products, and answer customer questions. It’s essential to be active on social media and to have a process for quickly responding to customers that reach out to you via social media.

Market your business with broadly 

Auto repair shop owners can market their businesses effectively and increase sales by following tips we’ve laid out in today’s post. 

Creating a marketing plan and measuring its success is essential for any small business and is crucial for companies that rely on word-of-mouth referrals. By implementing a solid marketing plan, you can retain more of your existing clients and attract new customers to grow the business.

At Broadly, we help small businesses like auto repair shops to create and scale their online marketing and lead generation efforts. 

We can also help you better communicate with your team and your customers, revamp your website, and more.

Want to see how Broadly can help you grow your auto repair business?

Watch your online reputation transform with Broadly

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  1. Auto Repair Service Business Plan Template [Free PDF]

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  1. Auto Repair Shop Business Plan: Guide & Template (2024)

    Start planning now Plans starting from $7/month Things to Consider Before Writing an Auto Repair Business Plan Select what area of repairs you'll work on Auto repairs shops take up a variety of jobs like repairing and painting car bodies, transforming old vehicles, or doing tire and mechanical repairs.

  2. Auto Repair Business Plan PDF Example

    Executive Summary. The Executive Summary introduces your auto repair business's plan, providing a succinct overview of your garage and the range of services it offers. It will detail your market positioning, encompassing the array of maintenance and repair services available, its location, dimensions, and a summary of daily operations.

  3. Business plan template for an auto repair shop

    Download the business plan template in PDF to print and have a read over it. Download in Word format Want to edit your plan on Word? Simply export the auto repair shop business plan template to MS Word (.dox) format. Tailor it to your own project

  4. Auto Repair Shop Business Plan Example

    1.1 Objectives The objectives over the next three years for F & R Auto Repair are the following: Sales revenues increase steadily through year three. Institute a program of superior customer service through rigorous evaluation of service experience. Hire three more mechanics. Need actual charts?

  5. Auto Repair Shop Business Plan Template + Example

    Download this free auto repair shop business plan template, with pre-filled examples, to create your own plan. Download Now Or plan with professional support in LivePlan. Save 50% today Available formats: What you get with this template A complete business plan Text and financials are already filled out and ready for you to update.

  6. Auto Repair Business Plan Template [Updated 2024]

    What Is an Auto Repair Business Plan? A business plan provides a snapshot of your auto repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans. Why You Need an Auto Repair Business Plan

  7. Auto Repair Shop Business Plan [Sample Template]

    1. Industry Overview Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start. All over the world, car repairs is one business that never goes into extinction.

  8. Auto Repair Business Plan (2024)

    Below is a template to help you create each section of your Automotive Repair business plan. Executive Summary Business Overview Tim's Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri.

  9. PDF Auto Repair Shop Business Plan Example

    Mission Statement Vision Statement Financial Summary Before you think about how to start an Auto Garage business, you must create a detailed Auto Garage business plan. It will guide you in the initial phases of your startup and help you later on. To unlock help try Upmetrics!

  10. How to write a stellar business plan for an auto repair shop

    Establishing the financial forecast is an integral step in the development of your auto repair shop's business plan. It is composed of 4 main tables, highlighting different financial aspects of the company: Projected profit and loss statement. Projected balance sheet. Projected cash flow statement.

  11. How to write a winning auto repair shop business plan

    1. Executive summary. The executive summary kicks off your auto repair shop business plan and provides an overview of what's to come. It should be clear, concise, and engaging enough to encourage people to read the rest of your business plan. While this section is a culmination of all your research, keep it brief and to the point.

  12. Auto Repair Business Plan Template

    A solid auto repair business plan acts as your strategy guide for building a successful business. Whether you're an existing auto repair business or just starting out, a business plan helps you get organised. Use an auto repair business plan to help secure funding for your business.

  13. Auto Repair Sample Business Plan PDF

    Auto Repair Sample Business Plan PDF | PDF | Retail | Business Plan 21531374-auto-repair-sample-business-plan.pdf - Free download as PDF File (.pdf), Text File (.txt) or read online for free.

  14. Auto Repair Business Plan Proposal PDF

    How to Start an Auto Repair Business - Automotive Business Plan PDF Are you considering starting an Auto Repair business and are in need of an Automotive Business Plan? if yes, you'll find this free book to be extremely helpful. This is a practical guide that will walk you step by step through all the essentials of starting your business.

  15. How to Create an Auto Repair Shop Business Plan

    Key activities - methods your business will use for competitive advantage. Key resources - e.g., staff, capital, intellectual property, networks, organizations. Value proposition - your company's unique value in the market. Customer relationships - how customers will interact with your business. Cost structure - your key business ...

  16. Automotive Business Plan Doc

    This fill-in-the-blanks template includes every section of your business plan, including your Executive Summary, Company Analysis, Competitive Analysis, Marketing Plan, Operations Plan and Financial Plan. This is must-know must-do information; ignore it and you stand a good chance to fail (a similar template is sold elsewhere for $69.95).

  17. Auto Repair Business Plan Sample

    NOV.11, 2016 Auto Repair Business Plan Sample ( 7 votes, average: 4.57 out of 5) Article Auto Business plans Auto Detail & Repair Business Plans Business Plan Templates Table of Content Do you want to start an auto repair shop business? Are you thinking of starting an auto repair shop?

  18. FREE 3+ Auto Repair Service Business Plan Samples in PDF

    1. Executive Summary. Start your business plan with a cover page where you put down your information such as the name of your auto repair shop, its address, your name as the owner, and the date when the plan is completed. The next first section of the business plan is the executive summary. This section provides an overview of each section of ...

  19. Sample Auto Repair Shop Business Plan

    The business plan sample in this article is an automotive business plan sample. This business plan sample has presented all the key areas of the business that will demand attention. It has presented the executive summary of the company; the vision and mission of the company; the products and services of the business to their clients; and the ...

  20. How to create a marketing plan for an auto repair shop

    They are made up of several main components: the market, objectives, and action steps. There isn't a single, perfect way to execute a marketing strategy; instead, it's more of a learning experiment. However, there are a few key things to consider when creating a marketing plan for an auto repair shop. The first step is understanding your ...

  21. PDF AutoCar Detailing Business Plan Example

    Get access to Upmetrics software, invite your team members and start writing your business plan. 1. Get tried and tested tips. Upmetrics business plan builder gives you everything you need to stay in sync and guides you on every step of your business plan writing. 3. Stunning business plan cover pages.

  22. Automobile Repair Shops

    Automobile Workshop Business Plan. To start an automobile repair store, It is required to plan the business first. Some basic terms in business planning you need to follow are: Service Availability: The first thing that needs to be considered is the number of services that will be available in the shop. Setting up the theme of the car repair ...

  23. Automotive. Business Plan

    1 Automotive Business Plan. 2 TABLE OF CONTENTS Statement of Non-Disclosure and Confidentiality 4 Executive Summary 5 Business Overview 6 Premise 6 Values, Mission and Direction of Business 7 Goals 8 Immediate Goals (0-6 Month) 8 Short-Term Goals (6 Month- 1 Year) 8 Long-Term Goals (1-3 Year) 8 Steps to Success 9 Management Team 9 Locality of Business 10 Merchandises and Services 11 ...

  24. (PDF) 2020E.C Feasibility study Auto Car Repaire and Workshop Project

    EXECUTIVE SUMMARY Redwan Auto Repair & Service Workshop is a service facility where automobiles are repair and overhauled by auto mechanics 4|P ag e f and electricians, it also offer paintwork repairs to scratches, scuffs and dents to vehicle damage as well as damage caused by collision and major accidents.

  25. Car Dealership Business Plan PDF Example

    The Plan. Our car dealership business plan is meticulously organized to encompass all key components necessary for a comprehensive strategic framework. It details our dealership's operations, marketing strategies, market environment, competitors, leadership team, and financial outlook.

  26. Car Wash Business Plan PDF Example

    The Plan. Our car wash business plan is designed to encompass all vital components necessary for a well-rounded strategy. It details the car wash's operations, marketing approaches, market landscape, competitors, leadership team, and financial projections. Executive Summary: Presents a snapshot of the car wash business idea, market evaluation ...

  27. Car Rental Business Plan PDF Example

    Our car rental business plan is designed to provide a detailed roadmap for establishing and scaling our car rental service. This plan covers key areas essential for a robust business strategy, including operational procedures, marketing strategies, analysis of the market environment and competitors, organizational structure, and financial ...